A firm specialising in the management of corporate events and training schemes has agreed a Creditors Voluntary Arrangement (CVA) with its creditors.
Hertfordshire-based Motivaction Group plc reached an agreement with creditors, including HMRC, to address the company’s debts of over £561,000.
Managing director David Buxton said: “The directors took the decision to restructure the business in February 2014 due to specific areas of the business under-performing, however there were no compulsory redundancies.
“As part of this restructure, the company has entered into a voluntary arrangement with a small number of creditors, enabling the company to re-focus on the core creative communications and event business. The company is also in the process of securing further investment to move the business forward in what will be an exciting year ahead.”
The company reported a pre-tax profit of £53,000 in its 2012 accounts, down from £103,000 the year previously.
As a result of declining income in the face of mounting debt, the company agreed the CVA deal and restructuring with creditors that also include Performing Artistes, Vitah Music, Funky Furniture hire Ltd, and City Furniture Hire Ltd.
HMRC is Motivaction’s largest creditor, owed £418,298.